Yahoo Finance Are You Looking for a High-Growth Dividend Stock?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
BNP Paribas SA in Focus
Based in Paris, BNP Paribas SA (BNPQY) is in the Finance sector, and so far this year, shares have seen a price change of 6.25%. Currently paying a dividend of $1.75 per share, the company has a dividend yield of 5.8%. In comparison, the Banks - Foreign industry's yield is 4.69%, while the S&P 500's yield is 1.73%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.75 is up 7% from last year. BNP Paribas SA has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 1.85%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, BNP Paribas SA's payout ratio is 36%, which means it paid out 36% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for BNPQY for this fiscal year. The Zacks Consensus Estimate for 2023 is $5.29 per share, representing a year-over-year earnings growth rate of 28.71%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BNPQY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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BNP Paribas SA (BNPQY) : Free Stock Analysis Report
